HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

Overheard On CNBC: If It Wasn’t For Bitcoin, Gold Would Be $3K

Bitcoin 2021/02/20 02:00 by Tony Spilotro

Bitcoin is making headlines left and right on media outlets everywhere, but none more so than CNBC. According to a well respected journalist, during a segment on CNBC it was said that gold would be trading at $3,000 an ounce if it wasn’t for Bitcoin.

Here’s why that statement is probably true, and why the cryptocurrency will continue to take market share away from the aging shiny rock.

Gold Would Trade At $3K If It Wasn’t For BTC

The digital narrative worked like a charm, and Bitcoin is now stealing any capital looking to park somewhere resistant to inflation.

Gold has traditionally served that purpose, and as the economy first began treading on thin ice, the ages old asset that was once the “standard” began to uptrend again.

Related Reading | Seller’s Remorse: Day Trader Dave Portnoy Swears Off Bitcoin

Gold eventually reached more than $2,000 an ounce at the height of its bull market. Natural profit-taking caused the price per ounce to pull back, but rather than go for another leg higher, capital well suited for gold made its way into Bitcoin instead.

Because Bitcoin exists, and money is pouring into the scarce cryptocurrency instead of gold, has prevented gold from trading at $3,000 an ounce, according to a statement overheard on CNBC today.

The statement was shared in a tweet, fingering the blame on Bitcoin as the culprit for gold’s lack of price appreciation.

How Bitcoin Makes Metals Seem a Lot Less Precious

Charts don’t lie, fortunately, and comparing gold against Bitcoin definitely shows a correlation between when gold peaked and the cryptocurrency really took off.

The change took place just days after gold had topped, and publicly traded companies began buying BTC to add to company reserves.

bitcoin btc xau

Gold's value has been diminishing while Bitcoin's rises. Coincidence? | Source: BTCUSD on TradingView.com

That trend has now extended into the likes of Tesla, and more corporations are expected to follow suit and could be responsible for Bitcoin’s price appreciation.

Other reasons, however, are undeniably due to gold outflows from hedge funds and other investors. Even retail are now getting back into crypto, but are focused more on altcoins as the price per BTC becomes out of reach for the average person.

Related Reading | Chart Comparison Demonstrates Effectiveness Of Bitcoin Digital Gold Narrative

But even altcoins absorbing some of the capital that could have made its way into gold, is ultimately Bitcoin’s doing. It is because of the first ever cryptocurrency that the rest of the market exists, and according the the statement made on CNBC, is responsible for gold trading at under $2,000, let alone the $3,000 it would be otherwise.

Featured image from Deposit Photos, Charts from TradingView.com

0 Like(s)



You should also read...

Bitcoin 03/04/20 10:55 by Samuel Wan
Analysis: Bitcoin Could be Headed to $1,000 Amid Unexpected Liquidity Crisis
Since Black Thursday, which saw Bitcoin bottom at $4.6k on the day, the number one cryptocurrency has since been range-bound with strong resistance at the $6.8k level. Although it’s been able to...
Read More
Bitcoin 17/05/20 19:30 by Cole Petersen
Bitcoin Moves to Break Key Resistance, But Funding Rates Could Spell Trouble
Bitcoin has seen a notable upswing overnight that has allowed the cryptocurrency to rally up towards its key resistance within the upper-$9,000 region. This upswing comes as its weekly close fast appr...
Read More
Other 18/08/20 01:00 by Cole Petersen
Tezos Needs to “Take Out” This Key Level to Avoid a Sharp Downturn
Tezos has seen some strong price action in recent weeks, with the cryptocurrency pushing as high as $4.40 earlier today before hitting some heavy resistance that slowed its ascent. Despite this streng...
Read More
Bitcoin 16/10/20 03:00 by Tony Spilotro
Coinbase Builds Into Bitcoin Ecosystem With Dev Grants, Wrapped BTC
San Francisco-based cryptocurrency exchange Coinbase has revealed two separate contributions to the Bitcoin ecosystem today. Here’s how the top crypto platform plans to boost the future of the f...
Read More
Bitcoin 30/06/21 22:00 by Tony Spilotro
Analyzing The Critical Bitcoin June 2021 Monthly Close
Today, June 30 marks the last day of the month, and after around 8PM ET the Bitcoin monthly candle will come to a close. This monthly candle isn’t anywhere as damaging as this past May, which hi...
Read More